Through a 3.7 Billion euros (or 4.1 billon dollars) offer, AMS AG has made an entry again in the fight for Osram Licht. Only days after a lower bid was rejected by a major shareholder, AMS has made this fresh offer.
Following this approach in the weekend from AMS, Osram’s shares rose to the tune of 11% on Monday. AMS has valued its target a value of 38.50 Euros/share. The previous offer rejected from Allianz Global Investor which is a major investor rejected the previous offer that was valued by equity firms Carlyle Group and Bain Capital at 35 euros/share. The investors argued that the said offer was too low.
Alexander Everke who is AMS CEO said that that the concerns raised by Osram in the past were valid and through this offer they have addressed all of their concerns. Everke in a call on Monday told the reporters that they had been looking at Osram for quite some time.
At 9:07 am Osram had traded @ 35.09 Euros in Frankfurt and AMS shares in Zurich had fallen by 8.7%.
Osram had become a target for takeover after they had a spat publicly with Siemens AG over strategy and also after continuous profit warnings. The earnings of the company have been hit due to the exposure of the company to automotive industry that is responsible for more than half of its earnings.
Further, the investors have lost their confidence in the ability of Olaf Berlien, CEO and his management to turn around the fortunes of the company. The company’s stocks have lost over half of its value since the peak it reached in 2018
If AMS is successful in its attempt of a takeover, it would sell the digital division of Osram and use lighting controls in medical systems and horticulture among others.